Selling a Machinery Manufacturing business
Based on hundreds of real buyer-seller diligence conversations we’ve helped happen on Rejigg, these are the shop-floor questions that actually move price and closing odds in machinery manufacturing: … These are the shop-floor questions that actually move price and closing odds in machinery manufacturing: whether job costing matches reality, whether backlog will ship, where capacity is truly constrained, how quality is controlled, and where margin leaks show up.
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What buyers evaluate, and how to prepare
What buyers determine
How to prepare
- Pull 10 recent quotes that became jobs. Show quoted vs. actual hours, material, outside processing, and scrap/rework
- Walk through 1–2 jobs end-to-end: quote assumptions, routing steps, inspection points, and what actually happened
- Separate prototype and first-run work from repeat production so buyers don’t price prototype churn as steady margin
- Document who updates run rates, setup standards, and burden rates, and how those changes flow into new quotes
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Export backlog by ship month. Label each line as release in-hand, blanket order awaiting release, or forecast
- Show last-moved dates and whether material is already purchased for major backlog items
- Summarize push-out and cancellation patterns for top customers and how your terms protect you
- If backlog is thin, show RFQ (Request for Quote) volume, quote hit rate, and how quickly you can load capacity in 60–90 days
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- List your top 3–5 constraint assets, what they run, typical utilization, and what work cannot be moved
- Document downtime history, recent major events, and the real recovery plan if it happens again
- Write out OEM and service support for key controls and which spare parts you keep on hand
- Document true backup options: qualified subcontractors who can hold tolerance and their actual lead times
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Explain how a job moves from quote to traveler to shipment, and how completion is tracked on the floor
- Break inventory into raw, work-in-process, finished goods, and a labeled “stuck/problem” bucket with a cleanup plan
- Show how labor and material are booked, and how you capture rework time and split jobs
- If you use progress billing or percentage-of-completion, document what triggers billing and how you avoid month-end surprises
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Gather real artifacts: a first-article packet, calibration log sample, and a nonconformance with corrective action
- Summarize scrap, rework, and returns for the last 12 months with top causes and what you changed
- Document how inspection plans are stored and revised, and what you do when prints are ambiguous
- List customer-specific quality gates and who owns audits, notifications, and deviation approvals
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Map typical routings. Highlight where parts leave the building and the queue time you usually see
- List key processors, lead times, common issues, and how you verify certs match the job
- Document whether alternates are qualified and what it takes to qualify a second source
- Summarize vendor-caused late shipments and what you changed afterward
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- List customers and programs with formal approval gates and what your first-article package includes
- Document common requalification triggers based on customer history and how long they usually take
- Show how revisions are controlled so shifts are not running different inspection plans
- Prepare examples of past re-approvals with timelines and who signed off
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Map quoting, programming, setup, inspection, shipping, and customer communication to named owners and backups
- Turn tribal knowledge into setup sheets, CAM (Computer-Aided Manufacturing) templates, inspection plans, and customer-specific notes
- Build a retention plan for key people and document comp, tenure, and the training pipeline
- Write a 90-day transition plan for customer handoffs and internal handoffs
Great answer
Good answer
Red flag
What buyers determine
How to prepare
- Document your quoting workflow, who touches it, what inputs you use, and typical turnaround time
- Show RFQ volume and hit rate trends, split between repeat work and new part numbers
- Write guardrails for risky work and show how you price it
- Bring 1–2 examples of declined work and why, plus a few where you re-priced after learning
Great answer
Good answer
Red flag
Straight from buyer evaluations
How buyers value this type of business
Where you land in that range depends on how spread out your customers are, what shape your equipment is in, and whether the shop runs smoothly without you on the floor every day.
What drives a premium
- Customers across different industriesServing automotive, aerospace, defense, and industrial customers means a slowdown in one area doesn't hurt the whole business.
- Certifications that took years to earnQuality certifications like ISO or AS9100 lock in customer relationships because they take significant time and effort to obtain.
- Special capabilities you do in-houseBringing heat treatment, coating, or precision grinding in-house shortens lead times and protects margins that outsourcing would eat into.
- Experienced machinists who've been around for yearsSkilled operators with decades of experience signal a stable workforce buyers don't need to rebuild.
Common add-backs
What the process looks like
- 1ListingThe day your business goes live on Rejigg.
- 2First messageMedian: 4 days laterA buyer requests a conversation by sending a first pitch.
- 3First callMedian: 7 days laterYour first completed call with a buyer to answer questions about your business.
- 4Letter of intentMedian: 59 days laterA buyer submits an LOI and you choose to accept, decline, or negotiate.
- 5Deal closeMedian: 89 days laterAssuming all is well in due diligence, you close the deal.
Common questions about selling a Machinery Manufacturing business
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